Labor Market Impacts

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Labor Market Impacts

Economic theory suggests that the impact of immigration overall on the economy is likely to be small and for any negative effects to dissipate over the longer term as the economy adjusts to a larger labor supply. The research collected here examines the labor market impacts of immigration, including how immigrant and native-born workers fare over time, as well as how their skill levels, countries of origin, gender, and other characteristics affect their outcomes in the workforce.

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Over the past half century, migration from Mexico and Central America to the United States has been driven in part by regional demographic and human-capital trends. As the U.S. labor force became better educated, fewer native workers accepted certain low-skilled jobs. This report offers a look at the economic changes that have coincided with a Mexican and Central American population boom.

Immigration is a prominent part of the United States’ DNA, despite concerns about immigrants’ ability to integrate. An examination of recent immigrant inflows shows newcomers to the United States are integrating well, based on language proficiency, socioeconomic attainment, political participation, residential locale, and social interaction indicators.

The global economic downturn and rising debt levels in all European countries have put immigration at the forefront of many debates surrounding public spending. This report presents a diversity of findings with regard to European governments' responses to immigrant integration organization, financing, and programs.

In a report by MPI's Labor Markets Initiative, noted economist and Georgetown University Public Policy Institute Professor Harry J. Holzer examines the economic reasoning and research on these questions and looks at the policy options that shape the impact of less-skilled immigration on the economy. The discussion is on what policy reform would best serve native-born American workers, consumers, and employers, as well as the overall U.S. economy.

Notwithstanding the broad consensus on the benefits of highly skilled immigration, the economic role of less-skilled immigrants is one of the more controversial questions in the immigration debate. While less-skilled immigrants bring economic benefits for U.S. consumers, employers, and skilled workers, they impose some costs on U.S. workers competing for similar jobs.

Immigrants have been disproportionately hit by the global economic crisis that began in 2008 and now confront a number of challenges. The report, which has a particular focus on Germany, Ireland, Spain, the United Kingdom, and United States finds that the unemployment gap between immigrant and native workers has widened in many places.

This important MPI report challenges the conventional wisdom about the immigrant workforce, using a sophisticated new method of analysis that permits deeper examination of how workers – immigrant and native-born – fare by economic sector, the skill level of their jobs, and educational attainment.

Despite conventional wisdom that the U.S. immigrant workforce is shaped like an hourglass—wide at the top and the bottom but narrow in the middle— in reality immigrants are more evenly dispersed across the skills spectrum. This report shows that the fastest growth in immigrant employment since 2000 has occurred in middle-skilled jobs.